Now that canned beer is on shelves, Atwater focuses on distilled spirits

A month ago, Atwater began canning its Dirty Blonde, Grand Circus IPA and Atwater Lager at the contract-brewery Brew Detroit LLC in Corktown.

When Mark Rieth took over Atwater Brewing Co. in 2005, one of his main goals was to get the company's beer into cans. Now, just less than a decade later, that goal has come to fruition.

A month ago, Atwater began canning its Dirty Blonde, Grand Circus IPA and Atwater Lager at the contract brewery Brew Detroit LLC at 1401 Abbott St. in Corktown. Within the next week, those cans were being shipped to retailers, bars and restaurants by Atwater's distributor, Imperial Beverage Co. The cans have been on shelves in selected stores for three weeks.

The story of how the beer got into the cans goes further back. Three years ago, Rieth began canning and selling Atwater out of City Brewing Co. LLC in Wisconsin. He wanted to see how the cans fared in the market and was persuaded by their success to bring the canning here to Atwater's home.

While the company rolls out the canned beer, it is also working on the rollout of distilled spirits made in Detroit, starting with Dirty Blonde Vodka.

The canned beer production marks a major milestone for Atwater, and Detroit, Rieth said.

This is the first time since 1985, when Stroh Brewery closed its 135-year-old location, that beer is being packaged in cans in Detroit, according to Rieth.

"You miss out on 30 percent of the market when you only sell bottle or draft," he said.

While not fully embraced by all, cans have advantages such as better portability and fewer restrictions (such as parks or other venues that do not allow glass.)

While consumer demand was a major reason, another motivator is a longer-term goal to bring the culture of Detroit across the country.

"For us, from a can standpoint, our ad says: 'It's a craft beer you can totally shotgun,' " Rieth said.

Atwater plans to add three more beers to the can family in the first quarter of 2015. Final decisions have not yet been made, but Rieth said there's a strong chance the Vanilla Java Porter will be released in a 16-ounce four-pack, and the D-Light, a beer with qualities both of ale and lager, in 19-ounce cans.

But not everyone is convinced.

Larry Channell, co-owner of Dragonmead Microbrewery LC in Warren, said although cans are more portable and may protect your beer, they have a stigma in the industry.

Brewery Vivant LLC in Grand Rapids would disagree. Ben Darcie, brewery representative and sales manager, said there are two enemies to beer — oxygen and light — and cans eliminate both.

Darcie said it's also one-third cheaper to can products than to bottle them, and Vivant has enough flexibility with canning to release 14 different brands of beer this year. He said he believes canning is the future for Michigan and Detroit beer, now that big players like Founders Brewing Co. and Bell's Brewery Inc. are releasing their top sellers in cans.

"It's inevitable," Darcie said.

Atwater is being sold in 18 states, with plans for breweries to be built in Texas and North Carolina in the next five years. Rieth said he doesn't want Atwater to be everywhere, though.

"We just want to be everywhere that makes sense for us. Areas that are thriving," he said. "But Detroit is priority."

International market growth is another focus area: A bar in Munich carries Atwater on tap, and Rieth has been in talks to get Atwater into Canada and Australia. Rieth said he would like sales to be 20-25 percent exports.

In about 60 days, Rieth expects to be granted a license to produce spirits in a micro-distillery at Atwater's 237 Jos. Campau location.

First on the still list is Dirty Blonde Vodka. Rieth said he wants to start with clear spirits first and then move on to darker, more aged spirits. By early October, patrons will be able to buy Atwater spirits at the Detroit distillery; Rieth said the company hopes to add store distribution in the future.

Atwater is in its 10th consecutive year of record sales, and is on track to gross $10 million this year with 60,000 barrels of beer, Rieth said. The company reported 2013 revenue of $4 million.